Perhaps, you have been thinking of how to make more money this year. If you have, a good place to start would be having an investment portfolio – that is setting aside a sum for investment.

Once you have done that, you can decide whether you want to invest in the stock market or in fixed income securities or just take the plunge and start business outright.

Here are 4 ways you can fatten your wallet this year:

1. Start A business: As far as investment is concerned, there are no hard and fast rules. Some people would suggest business and there could be no shorter routes to making real money than starting a business. But whatever business you do, make sure to do your research well. It makes all the difference. It also helps if its in something you have a natural interest in as this will fuel your zeal.

Also Read: 5 Agricultural Products You Can Easily Export To Europe, US

However, the stakes are even higher in terms of risks. For instance, the kind of person you get to run the business would determine how successful it becomes no matter how beautiful the idea is.

2. Treasury Bills: Treasury bills come top on the list of fixed income investment. It still brings very attractive rates. Even at 13%, when you look at effective yield, it is a lot better deal.

You know how it works, you are getting your interest upfront unlike fixed deposit. If you are having your fund at a bank in a fixed deposit, you would still be charged an interest at maturity despite having to wait the entire time.

So, treasury bills would still be a way to go in 2018. If you are not so sure where the market is headed, you can take short term positions and do 30 or 60 days.

3. Mutual Funds: If you are considering a long-term investment with minimum capital, maybe for your kids on a long-term basis, there is the mutual funds.

You can profile available mutual funds and find out which best suits your investment objective.

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How mutual funds work is that by that pulling your funds together, you can negotiate a higher return than just taking your 5,000 naira to the bank.

4. Stock Market: As far as equity investment goes, the key lies in identifying stocks that have strong fundamentals.

Afrinvest told a story of an episode that happened in the market recently. People were buying stocks of banks that have not released results in the last two years.

Some of them have negative capital adequacy ratio and people were buying their stocks and now in the last few days, everybody wants to sell at the same time but there are no willing buyers.

Such stocks are called value traps and you need experts to help you avoid them. They look very attractive and people feel they could easily double their money but at the end of the day, they are trapped.  

You Should Watch This Before Investing In Stock This Year